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Climate action for SMBs

Leveraging data to help SMBs reach net zero.

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Case study
Case Studies
Strategic Futures
Breakthrough Products
Climate
Financial Services

For more than 40 years, Sage has helped businesses of all sizes navigate complex business environments. While many of its larger customers have the means and the structure to support climate initiatives, many of its smaller customers do not.

Sage wanted to help its SMB customers get ahead of future climate regulations and meet consumer expectations. And building carbon-footprint evaluation and mitigation tools would also dovetail nicely with Sage’s own climate aspirations: cutting its own emissions in half by 2030. Together, Sage and IDEO investigated how the company could leverage the data in its platform to calculate its customers’ emissions, both direct and indirect, and how that information could spur action as they aim to hit net zero.

To get started, the design team went deep with customers running all kinds of businesses—from a taxi company to a champagne bar to a falconry center. Business owners shared that their focus often has to be on the day-to-day, a series of small decisions that, when added together, lead to business success. For many, tackling a problem as complex as climate change felt overwhelming. IDEO and Sage synthesized those insights and began working across verticals and products, bringing together experts from marketing, technology, sustainability, and operations to build out new concepts. With the help of two carbon accountants, the team worked to figure out how existing data could inform customers about both their direct and indirect emissions, which can be harder to track. Given how tight SMBs’ margins are, they focused on how that knowledge could fuel emissions-cutting changes that also save money, giving businesses extra incentive to take action. Together, the team created a roadmap of customer outcomes and experience guidelines to help shape future products.

Sage has taken that work forward, launching Sage Earth, a platform that aims to help businesses measure, manage, and mitigate emissions—even across supply chains. With carbon accounting now built directly into all Sage Accounting and Sage for Accountants products in the UK, Sage has made climate action practical and accessible for millions of SMBs. By automating emissions measurement and reporting, Sage Earth removes barriers of cost and complexity, empowering business owners and their accountants to stay competitive in supply chains where up to 95 percent of emissions occur. 

From co-developing the UK Voluntary SME Carbon Reporting Standard to launching a Carbon Accounting API, which gives banks, fintechs, and other platforms access to Sage’s Carbon Engine, Sage is embedding sustainability into the systems people already trust—helping hundreds of thousands (and rapidly increasing) small businesses turn climate ambition into everyday action.

Small- and medium-sized businesses—companies with fewer than 500 employees—make up about 90% of the world’s businesses, according to U.N.-backed SME Climate Hub.


Two thirds of small businesses don’t know how they’re going to reach net zero, and lack the resources to do so, according to a recent survey by SME Climate Hub. Still, the majority reported they want to act on climate, recognizing it can help them become a more resilient business.


Large companies may be the biggest emitters of greenhouse gasses, but an estimated 80% of those emissions come from supply chains—often made up of smaller enterprises.

Scaling rapidly

in the three years since the launch of Sage Earth, which is now being used by hundreds of thousands of businesses

World's 1st

open-source hybrid emissions factors dataset, Carbon Commons, led by Sage, helps SMBs calculate carbon footprints using existing data
When it comes to climate action, it's easy to just point fingers at big business. But in the UK alone, small- and medium-sized businesses (SMBs) account for some 50 percent of business emissions. And with more regulation rippling through supply chains, and more and more consumers, employees, and investors becoming increasingly environmentally conscious, taking climate action is more important than ever. At the same time, for many organizations of this size, resources are tight, and there are many other urgent priorities. It’s hard to make changes for the benefit of the environment when your primary focus is on the survival of your business. Recognizing those pressures, Sage, a multinational accounting and business software company, partnered with IDEO to investigate how it could support its customers on their journey to becoming net-zero businesses.
Sage leveraged its existing data to create Sage Earth, a platform that allows small- and medium-sized businesses to manage their journey toward net zero.
Sage creates new tools to help small businesses be more sustainable.
Sage
North America
Sage
Climate action for SMBs, net zero, SMB sustainability, Sage, climate innovation, sustainability, financial services, fintech, financial innovation, digital transformation, digital experience, digital product design, UX design, human centered design, design thinking, customer centricity, climate strategy, sustainable design, circular economy, data strategy, data driven design, data visualization, how to design a digital product, how to make business more sustainable, innovation, strategy, product design, transformation, climate change, how do we innovate

Reframing menopause

QVC works to change the narrative, while meeting customer needs.

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Case study
Case Studies
Strategic Futures
Breakthrough Products
Consumer Products & Retail
Health

Menopause is much more than a biological transition—it is a profound shift that often arrives just when people experiencing it start to feel invisible. Because it has long been shrouded in darkness as an unmentionable female affliction, those going through menopause often feel unprepared and alone.

Recognizing that its customer demographic makes QVC uniquely positioned to surface conversations and provide support to those dealing with menopause, the video commerce retailer partnered with IDEO to figure out how it could not only meet customer needs, but also flip the conversation on midlife. To learn more, a team of female design researchers held in-depth interviews with folks experiencing it firsthand. The people they spoke to had limited information about what was going on with their bodies, and in some cases, it took years before they understood that symptoms they were experiencing were related to menopause. Respondents also reported that midlife brought a change in social status and the feeling of being boxed in by stereotypes.

QVC and IDEO worked together to design an integrated suite of offerings that could give customers a safe space to discover and share more about menopause. That included an on-air programming series called “Menopause Your Way,” where QVC could support those going through menopause in the privacy of their own homes, a digital landing page with useful solutions, and social media campaigns to help women share and learn more about each others’ experiences. Because people experience menopause and choose to manage it in many different ways, the team wanted to create an integrated ecosystem of content that women could access according to their unique journeys. The new offering helped QVC  reach its core audience with solutions and relevant products, and created a space where menopause is out in the open and part of an ongoing conversation. And in the process, QVC evolved to become a more customer-centric company, putting its audience and their needs at the heart of its offerings.

9/10 of British menopausal women say society and brands overlook them.

1 in 2 women in the UK admitted they didn’t know what was happening to them during perimenopause.

Nearly 40% of menopausal women are being prescribed antidepressants to help manage their symptoms, despite 4 out of 5 describing the treatment as “inappropriate.”

Season 2

a series focused on menopause is now in its second season

About half of the world’s population goes through menopause, and yet, until recent years, it didn’t get much attention in public and cultural spheres. For too long, people ended up navigating profound physical, emotional, and social changes with little support—sometimes even among friends. It’s an unpredictable and highly individual journey that many have felt unprepared for, even ambushed by. As a brand that reaches millions of people in their homes during times of transition, QVC, the video commerce retailer, is uniquely positioned to meet the needs of those dealing with the effects of menopause. Together with IDEO, QVC recognized and responded to the growing discussion around menopause, working to find ways to support their customers by surfacing conversations, strengthening the brand’s relationships with its customers, and curating useful products for this time of life. The ultimate goal: to reframe midlife as a time of vibrancy and exploration.
QVC and IDEO are flipping the conversation on midlife with an integrated ecosystem of content designed to give people experiencing menopause a safe space to share and find useful products, with on-air programming, digital resources, and social media campaigns.
How QVC is reframing midlife as a time for women to thrive.
QVC
North America
QVC
Reframing menopause, menopause, women’s health, QVC, consumer products, retail, consumer experience, retail innovation, healthcare, health innovation, patient experience, brand strategy, brand design, brand identity, brand experience, understanding user needs, how to build a brand, innovation, strategy, customer needs

Healthy youth

Improving digital tools to help practitioners deliver critical mental health support to children and young people.

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Case study
Case Studies
Strategic Futures
Creative Capabilities
Health
Public Sector

Healthcare is a complex web of institutions, interaction, relationships, and services. In England, the National Health Service consists of thousands of separate organizations spread across the country. This fragmented structure means that rolling out digital tools and using them to their full potential can be difficult.

NHSX approached IDEO and Public Digital, IDEO’s sister company, for help designing user-centered resources that would empower Children and Young People’s Mental Health (CYPMH) practitioners to use digital tools more effectively, shifting service design from a reactive to a proactive process, and allowing each regional organization to create the best digital services for their children and young people.

The team took a human-centered approach, tapping into the perspectives, challenges and needs of NHS practitioners and leaders across the system over months of research. They then designed a set of accessible, straightforward online resources, courses, and templates that would enable a practitioner to start their own local service transformations. These included everything from practical advice on improving users’ experiences of CYPMH, to teaching methods for service design, to content focused on achieving digital transformation at scale.

The resources were easy to implement and replicate, allowing mental health practitioners across the country to seamlessly integrate physical and digital, create firebreaks in the system, and better bridge the gap between seeking care and receiving it. They were designed to evolve over time, and the work is replicable across the NHS, with the potential to touch millions of lives.

By empowering practitioners to utilize these digital tools to ease the burden of care, NHSX plans to create a positive ripple effect across the entire NHS, its partner organizations, and the country at large.

In a study undertaken in July 2020, the first summer of the COVID pandemic, the NHS found that clinically significant mental health conditions amongst children had risen by 50% compared to three years earlier.

More options, more access

digital resources are helping children and young people access more options for their mental health care
When the pandemic hit, mental health workers and practitioners supporting children and youth were under unprecedented pressure, and needed support, fast. In the United Kingdom, one in six children aged 5-19 were reported to have a probable mental health disorder in 2020; three years earlier, it was just one in nine. These vulnerable young people and their families needed access to quality mental health services, no matter where in the country they lived. Together, NHSX—England’s National Health Services health tech unit—IDEO, and Public Digital, IDEO’s sister company, collaborated to create a suite of digital resources that enabled organizations across the NHS to transform their services, allowing them to provide mental health support for more vulnerable children and young people.
How bringing human-centered design to digital tools empowered practitioners on the front lines of children’s mental health.
Transforming digital services to support kids' mental health.
NHSX
NHSX
Healthy youth, mental health, family mental health, NHSX, healthcare, health innovation, patient experience, public sector innovation, government services, civic innovation, digital transformation, digital experience, digital product design, UX design, business transformation, organizational transformation, culture change, healthcare design, digital health, patient-centered care, design for children, family experience, youth experience, how to design a digital product, innovation, service design, product design, human centered design, research, transformation, government

The future of air travel

Reinventing supersonic flight with Boom.

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Case study
Case Studies
Strategic Futures
Mobility

It’s not easy to shift the paradigm for an entire industry. But when a company comes along that promises to reinvent air travel, it opens up a blue sky of opportunities. That’s the flight path for Boom Supersonic, which is thinking big about how passengers arrive at their destination not only faster, but also with a greater sense of wellbeing.

To really comprehend the experience of flying in the unique contoured profile of this ultrafast jet, and to help Boom make key decisions about the design of the plane, the IDEO team believed that you had to go beyond algorithms and schematics—you needed to actually board it.

Using a “build-first” approach, the team quickly constructed a full-scale mockup of the fuselage from plywood and foam core. That became a prototyping platform to test multiple seating configurations, galley and lavatory size and placement, luggage storage solutions, and other concepts that would differentiate and add value to the passenger experience. For the first time, the Boom team was able to set foot in its own aircraft and truly understand the experience from the perspective of its clientele. The exercise allowed the Boom team to confidently make decisions by comparing multiple cabin configurations and options in full-scale.

Throughout the project, Boom and IDEO invited future travelers aboard to interact with the prototype and offer feedback. That input culminated in a more refined model, with augmented windows, moonroof, in-flight entertainment screens, and sound design—all further augmented by a Virtual Reality component to allow our future travelers to fully immerse in this new experience.

Together, Boom and IDEO brought a sneak peak to the Farnborough International Airshow, a biannual exhibition for the aerospace, aviation, and defense industries. The event was an opportunity to give the industry and potential customers a preview of Boom’s innovative new jet. In collaboration with the client, an exhibition architect, and a digital production agency, the team created an immersive environment designed to make the Overture experience feel tangible, eliciting the wonder of this revolutionary plane.

Boom’s presence at Farnborough not only underscored the Overture’s progress but provided an inspiring glimpse into the future of air travel. During the air show the company announced the production Overture design, a market-expanding alliance with Northrop Grumman, and agreements with tier one suppliers Collins Aerospace, Safran, and Eaton. Not long after, Boom received its largest order to date, this one from American Airlines. 

The prospect of getting to London in time for dinner just got a little closer.

Boom plans for Overture to get from New York to Frankfurt in just over four hours instead of the eight hours spent on a commercial jet today.

The Overture supersonic jet has a cruising speed of Mach 1.7, about twice as fast as today’s commercial planes. Overture is built to fly on 100% sustainable aviation fuels (SAF).

20 Overture deposits

made by American Airlines, joining current customers United Airlines and Japan Airlines
Need to get to London, and fast? After a more than two-decade hiatus of supersonic flight, passengers will soon have the option of ultrafast, sustainable fuel-powered air travel thanks to Boom Supersonic. Since 2014, the company has been working to redefine air travel, creating an experience that is fast, safe, and net zero carbon in its operation. The company is rethinking everything from the plane itself to the passenger experience inside the aircraft to the company’s business model, and even the kind of fuel it will use. Boom plans to have passengers on board Overture by 2029. To get there, the manufacturer needs to not only build out the new aircraft, but also to create an all-new passenger experience. IDEO partnered with Boom to define and prototype what supersonic travel might look and feel like, influencing decisions about Overture’s interior design and bringing the experience to life for future customers at a major industry trade show.
For sustainable supersonic flight to become a reality, Boom Supersonic needed a design partner to bring the experience to life for potential buyers.
Ultrafast air travel is coming back, with an all-new passenger experience.
Boom Supersonic
Boom Supersonic
The future of air travel, supersonic travel, air travel, aviation innovation, net zero, SMB sustainability, Boom Supersonic, mobility, transportation innovation, prototyping, rapid prototyping, design sprint, venture design, new business creation, business model innovation, climate strategy, sustainable design, circular economy, mobility design, future of mobility, future strategy, strategic futures, designing for the future, innovation strategy, business innovation, design innovation, how to innovate, how to make business more sustainable, innovation, strategy, sustainability, transportation, how do we innovate, experience strategy

To Transform Your Industry, Look at Someone Else’s

What a team of surgeons learned from a field trip to the airport

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Article
Articles

Analogous research is a form of exploration that takes a team outside of its industry to find inspiration in the ways others have tackled similar challenges. These immersive experiences allow us to move beyond our expertise to see challenges with fresh eyes. In these moments, we build new levels of understanding and empathy that help us unlock aha! moments and generate ideas that we can ultimately bring to our own design challenges.

A few weeks into a project focused on redesigning the patient surgical experience with Newton-Wellesley Hospital (NWH), we saw an opportunity for analogous inspiration. Our client aimed to disrupt its industry by creating a service that focused not just on clinical outcomes but on the entire patient experience–from check-in to check-out. We assembled a team of surgeons, anesthesiologists, nurses, and hospital executives to help us design a better experience for patients. About halfway through the project, it became clear that they needed inspiration from outside the healthcare industry.

So we headed to the airport. Why? Because, like performing surgery, taking to the skies isn’t a simple process. It involves lots of regulation, moving parts, and coordination. While an airline’s mission is to deliver a passenger from A to B, its purpose is to deliver a seamless, customer-centric travel experience. Airlines have invested in products and services to create that kind of experience, but many surgical departments haven’t considered the entire patient journey–beyond what happens clinically under the bright lights of the OR.

We brought the hospital staff to Boston Logan Airport for a morning with JetBlue—an airline known for great customer service. When the docs on our team first caught wind of the trip, they were a bit skeptical. It’s not easy to convince a bunch of highly-trained surgeons to scrub out of the OR and go on a field trip. But they piled into cars and headed to Logan.

We started at check-in. The hospital team was issued mock boarding passes and asked to check-in for their upcoming flights. They had the option of using a kiosk, their phone, or speaking to a real, live person.

Almost immediately the team began to discover parallels between the patient experience and the traveler experience. The surgeons on the team quickly noted how many different pathways there were for customers—options for families, those with disabilities, and frequent fliers. “We only have one option for our patients, but patients aren’t all the same,” one surgeon said.

The lessons continued as we cleared security. The group stopped by the Just Ask counter, JetBlue’s customer service desk. Staffed with friendly crew members, Just Ask is exactly that—a place where customers can ask JetBlue anything. That includes getting directions to the bathroom, finding out the score of the Red Sox game, or asking to rebook a flight. JetBlue crew members are empowered to help passengers—even beyond their standard job descriptions. A pre-op nurse on our team suggested having something similar in the hospital–a place where patients and their loved ones could get the support they need. “I bet it’d be easy to prototype this type of service, and it would help us learn what patients really want,” she said.

The group ended its day at JetBlue’s operations center and crew lounge. Here, the two teams met to discuss the day’s takeaways. “It starts by building a united team,” said the manager of onboard service and hospitality standards at JetBlue. “Sure, we can launch programs like the Blue Cafe to provide complimentary snacks to delayed customers or hand out pilot wings to young travelers. Of course, we do these little things–but what really matters is working together to create a consistent experience across a customer’s travel journey.”

When the NWH team circled up later that week, it was clear something had changed. The team was buzzing. Catalyzed by the analogous field trip, the doctors and nurses were ready to get to work. They mapped out a handful of prototypes to test at the hospital, including a redesigned lobby experience, and a way to engage with patients with different levels of confidence and familiarity with the hospital system.

At IDEO, we treasure these moments of cross-industry learning. Sometimes all it takes is for leaders and frontline workers to get out from beyond their desks and see things from a new perspective.

So, next time you’re feeling stuck, seek inspiration outside of your comfort zone. Consider how others have solved unique but similar problems. It might just be the change in perspective your team needs to recharge and think differently.

At first glance, surgery and airline travel don’t appear to be very similar. But if you dig deeper, you’ll find overlapping themes in the work experiences of surgeons and airline employees—stress, a high-pressure environment, a lot of team coordination. Actually, these industries have a lot to learn from each other. We at IDEO call this analogous research.

Mobility
to transform your industry look at someone else's, mobility, transportation, travel experience

Successful Innovation Labs Have These Four Things in Common

Labs may have a bad rap, but these four principles can help yours thrive

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Article
Articles

One way to offer air cover for ideas that may look wild at first is to build an innovation lab—a dedicated safe space where employees can focus on deeply understanding customer needs to design the next generation of products and services for the parent organization.

Unfortunately, many labs have gotten a bad rap for being nothing more than cost centers or design palaces with modular furniture, generating radical ideas that are not aligned with the core business.

But not all labs are fads. They take time to find their stride and show value—sometimes several years to see a new product or service through from ideation to market. That kind of timeline requires leaders with strong enough stomachs to ignore short-term failures, knowing it’s the only way to ensure long-term sustainability.

When setting up a lab, you might take a few cues from the organizational wisdom of ant colonies.

Every six months, a small group of explorer ants finds a new space, and excavates tunnels to enable the entire colony to relocate. The explorer ants start small, then scale, marking the route for the rest of the ants to follow.

Some would hypothesize that this process is a preventative strategy—keeping predators on the move. More importantly, savvy explorer ants avoid uprooting the entire colony until they’ve tested the new space and defined a clear path to get there.

Labs can do the same thing: keep the competition guessing and mitigate the risk of scaling a new product or service before it’s market ready.

In order to succeed, innovation labs require a clear purpose that will empower the parent organization; a portfolio of beacon projects that push the edge of the organization’s current strategy; creative teams with a breadth of expertise; and work spaces where the lab can develop and sustain its own unique culture.

Below we map the pathways to success in each of these areas, which any lab can use to mobilize, pioneer, and scale new ideas.

1. Define the lab's reason for being

Defining the organization’s purpose and reason for existing beyond making money is harder than it sounds. It requires some organizational soul-searching followed by deft communication. But once you’ve aligned on a purpose statement, it can shift things in radical ways, helping employees make decisions about what initiatives to pursue and what to put aside. IDEO’s creative business research studio has found that teams that foster a clear, consistent, and inspiring purpose have 12% more successful launches than teams that do not. Customers may also gain a new understanding of what you stand for and relate to you in a new way. And in a lab, a newly defined purpose can reignite the parent organization’s entrepreneurial spirit, creating a shared identity and reason to continually reinvent itself.

In 2016, the Chairman of Ford Smart Mobility, Jim Hackett, set out to define the purpose of the mobility ecosystem for Ford Smart Mobility. To do so, he established Greenfield Labs, a human-centered lab based in Palo Alto.

The sole purpose of Greenfield Labs, Hackett said, was to “bring humanity to mobility.” That clarity of focus helped to define a portfolio of work that oriented toward those who don’t drive cars, and the highly integrated ecosystem required to move goods and people freely through cities, countries, and the world.

Imagine that: America’s oldest car company setting out to improve things for those who don’t drive. With Jim’s appointment to CEO in 2017, Ford Motor Company articulated a new purpose: to be the most trusted mobility company, designing smart vehicles for a smart world.

For an organization whose sole objective for the past 115 years has been to mass produce vehicles, it’s a hard mental shift to make. But envisioning the impossible is a part of the company’s legacy.

To execute its new purpose, Ford will continue to build smarter vehicles. That’s core to its business. But setting out to understand the larger ecosystem is new to Ford’s portfolio. The role of Greenfield Labs as it establishes new locations in strategic geographies will be to partner with businesses and cities to bring customer needs to the forefront of the design of its products and services.

2. Test your strategy through beacon projects

Like the explorer ants, an innovation lab seeks out new opportunities that are complementary to—and sometimes in competition with—the parent organization’s core capabilities. Ideally, the innovation leaders and the parent organization work together to identify and solve high-priority problems through beacon projects. These are riskier endeavors that push the edge of a company’s strategic portfolio in several key ways: They compete with the core business; they must actually launch a new product, service, or venture into the market; and they build new capabilities along the way. These edge cases, which have a high degree of uncertainty and longer time horizons, may compose up to 20% of the company’s strategic portfolio. If they work, they can be game-changers.

In 2013, Carlos Rodríguez-Pastor, Chairman of Intercorp, one of the fast-growing companies in South America, enlisted IDEO to help build an affordable public school system that would address the needs of emerging middle class Peruvians. After six months of research, design, and testing in a wide array of areas including brand, architectural design, curriculum design, business economics, teacher requirements, and school uniforms, Intercorp launched Innova Schools. What began as an initial prototype has now grown to 54 schools in Peru and one in Mexico. Innova is profitable and has graduated countless students who lacked an affordable schooling option. Innova is now planning to expand globally to bring affordable education to the world.

Intercorp’s second project focused on redesigning Interbank’s lobbies and in-person service experience to reduce customer queues and wait times. These observations revealed that customers would often have to wait in three different lines to request, pay, and pick up their items. The project illustrated the importance not only of improving the customer experience, but of redesigning the employee experience so they were empowered to deliver a more personalized customer experience.

Twelve months after the rollout, Interbank showed a 10% increase in new customers and an 80% increase in sales, with gains in all categories. Their NPS score showed customer loyalty skyrocketing, from 53 to 87. Those outcomes have translated across other businesses. The success of Innova Schools and Interbank inspired Rodríguez-Pastor to integrate human-centered design mindsets and methods in an in-house innovation hub, which he called La Victoria Lab. Its mandate: To transform Intercorp.

Established in 2014, the lab started small with a ragtag team of design mercenaries and a new Chief Innovation Officer, Hernan Carranza. With unique specialities in business design, anthropology, and graphic design, they called themselves an “expeditionary force for the future.” They provoked Intercorp businesses to define products and services their customers would love, utilizing human-centered ways of working.

One of the first projects sponsored by the lab set out to define the needs of Peruvian families. These family archetypes created a common ground from which all 35 different companies from Intercorp could build, with the lab as the center of gravity uniting future businesses.

Today, La Victoria Lab has grown to over 30 people, accelerating 50 beacon projects and hundreds of new ideas across Intercorp’s companies.

And while many of the 35 companies are now capable of running their own beacon projects, La Victoria Lab continues to sponsor cross-business initiatives, such as digital transformation.

With hundreds of new ideas infiltrating the organization, La Victoria Lab has already inspired new ways of thinking about Intercorp’s 35 companies—as strategic platforms in education, healthcare, financial services, retail and emerging businesses. The lab will also continue to define new mindsets and capabilities to attract, retain and develop best-in-class talent for all of its future businesses.

3. Build creative teams

Just as an ant colony needs both explorer and worker ants to survive and thrive; a lab needs and a mix of strategists, designers, and makers. Finding people who balance breadth of interests and capabilities with depth of expertise enables the lab to quickly pivot in both project and purpose if needed. Those workers are often called T-shaped, because they can go both wide across subject areas and deep on craft. It’s been shown that cross-functional, collaborative team make more rigorous, data-informed decisions, following the evidence from prototyping, solution modeling, and customer insights over hunches and gut feelings.

Here are a few of the qualities to look for in your lab’s explorer ants:

Expertise: Look for capabilities like interaction design, user/design research, software design, industrial design, communication design (visual and verbal), business design, product design and organizational design.

Mindset: Hire those who are curious, empathetic, optimistic, open to experimentation, collaborative, and comfortable with ambiguity. The no asshole rule is also critical to building collaborative teams. We’ve seen many labs fail because they held on too long to talent that was toxic to the experimental culture.

Method: Mastery of design thinking methods, including user observation and interviewing, synthesis, brainstorming, prototyping, and storytelling (to name a few) are a must. These are core capabilities to building to learn, not necessarily scaling to implement.

4. Create space and rituals for creativity

Culture is probably the biggest differentiator between the lab and the parent organization. Labs must produce radically new ideas, and a creative culture that can produce such ideas looks very different from a culture built to optimize. It’s okay to have subcultures, as they serve a different purpose and have different outcomes, but they have to work together.

At Ford’s original Greenfield Labs, many elements merge to set the stage for innovation, and developing even a few of these can lead you in the right direction.

Location: Labs thrive when they are physically far enough from the parent organization to explore a new idea without too much scrutiny, but close enough to test and co-create with the teams deeply embedded in execution. And importantly, they work best in locations with a diverse range of creative talent. Follow the designers.

Team time: Start with fewer meetings. Makers or designers need long, uninterrupted time to think and create. Maker teams protect this time by negotiating their own hours. Most teams collaborate from 10 a.m. to 4 p.m., with early and late hours reserved for administrative tasks. Status update meetings in the middle of the day are going to wear on your productivity time.

Field trips: Work hard, play hard. Making time and supplying budget to visit people in the field is paramount to lab work. If teams aren’t inspired, the work suffers. Not all inspiration visits are literal. They can be as simple as visiting a museum or competitor’s space together. Shared learning is the key.

Language: Instead of words like “policy” and “process,” Ford’s Greenfield Labs uses words like “guidelines” or “drumbeats.” They don’t get attached to job titles or hierarchies. No one “reports to” anyone. Instead of “leaders,” they use the term “stewards.” This is not a small point—words matter in defining expectations on a daily basis. It sets the tone for how we expect people to behave.

Values: After the first year, Greenfield Labs rewrote their values, one of which is “quirky.” That’s not something you’d identify with Ford, and it helped to formalize the goal of having a dynamic, diverse culture.

Rituals: Recognition goes a long way. Often teams are working on complex, long-term programs with multiple start-stops, owners, and changes in direction. One way to avoid a feeling of slow progress is to celebrate the small wins that occur more frequently. Greenfield Labs has a weekly ritual they call “putting socks on a chicken.” Inspired by a team member’s remark that some problems are harder than putting socks on a chicken, each week, the lab assembles to present one notable problem solver with a pair of wild or weird socks as a kind of high five. The tradition has become so beloved that new hires and visitors to the lab are also indoctrinated with their own customized socks (some actually have chickens on them). And notably, there is now a budget line-item for socks.

Learning from failure: Another way Greenfield Labs codifies lessons learned is to create digitally documented retrospectives and give out an annual "Phoenix Award" to honor failed projects and ceremoniously bid them farewell. If you are allowed to fail and celebrate what you have learned, people will be more likely to take the necessary risks to drive innovation.

Storytelling: It’s important to reinforce the lab’s reason for existing and to build a shared narrative with the parent organization, which can in turn be shared externally. Video is a great medium for storytelling, whether creating short and scrappy vignettes or more polished productions with B-roll and music. It gets the point across without a deck. In fact, skip decks altogether if you can.

Space: Expressing the spirit and aspirations of the lab through physical design is about more than post-its and foam core boards. The value of considering space lies in differentiating the lab from its corporate parent and infusing it with human dimension and creativity. This can be reflected through open floor plans, high ceilings, and plenty of daylight. Collaborative and heads-down working areas are also necessary for digging into hard problems.Instead of company logos, display photos of real people who use the new services or products. These are the ingredients for a hub of activity and creative expression, and they’re important visual signals that enable the work to be scrappy as it moves through different levels of fidelity.

Is a lab for you?

Labs are not for the faint of heart. If organizational change were easy, no company would falter. But with a clear purpose and portfolio of beacon projects, a lab can focus on new explorations while the parent company delivers its core offers. It’s a partnership.

In an era of fast-paced change and technological disruption, we’d do well to learn from the long-proven survival tactics found in nature. Ants know how to establish a link between the original colony and an exploratory space. Then slowly, ant by ant, they complete the monumental task of upending the entire colony to ensure their perseverance.

Unless otherwise specified, all statistics come from IDEO’s Creative Difference, a digital tool to assess, guide, and track the development of creative and innovative teams.

Visuals by Jeannie Phan.

Today’s leaders face immense pressure to optimize their core offers and cultivate new ideas. But in large organizations, new ideas are too often smothered by middle management. We don’t have to look too far back to Kodak, Blockbuster, and Yahoo for reminders of behemoths that became so attached to a core product and revenue stream that they overlooked riskier—but highly promising—opportunities.

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successful innovation labs have these four things in common, innovation, new revenue streams, leadership

Inviting Algorithms to the Design Team

How a graphic designer, a data scientist, and an algorithm teamed up to create an art exhibit

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As my team and I prepared for Typeforce, an annual Chicago typography gallery show, we started to think about how we could leverage AI and our own creative skills to build an intelligent system that could work with us—a communication designer, a production designer, and a data scientist—to create a visually distinct submission.

While you might think of typography as designing or selecting just the right font and arranging it immaculately, submissions to Typeforce range far outside that, including everything from carved sculptural elements and needlepoint to hand-drawn tableaus and digital installations. It was our first time submitting to the show, and our goal was to take advantage of this wide-open opportunity and use our individual crafts to make something out of the ordinary.

We imagined a creative process where Kristen, our communication designer, would give an algorithm examples of posters with interesting type compositions, and it would try to learn from them and spit back lots and lots of attempts to create something similar. Kristen could use the algorithm’s generated posters as starting points for creating new posters to feed back into it, as well as clues for what it still needed to learn. Trying to train the algorithm could itself become a great set of constraints for creativity, and when it was over, we could show off the visual artifacts of that back-and-forth process at the show.

We landed on Dadaist and Futurist compositions as an interesting place to begin. The Dadaists made things that didn’t make sense, reacting to a world (at the time, in the midst of World War I) that also didn’t make sense. That felt relevant to today as well, and had the added bonus of being something a computer might be better at producing than more immaculate, grid-based layouts.

The left and center posters are by Filippo Tommaso Marinetti; the right is by Kurt Schwitters.

So we got to work collecting historical examples we liked, and Kristen traced them so I could feed them into our algorithm as digital files. I got to work on the algorithm itself, which we named Kurt, after the Dadaist artist and designer Kurt Schwitters.

For Kristen, teaching Kurt initially felt weirdly similar to teaching a human design student. He made compositions and she looked at them, identified his strongest concepts, and "suggested" ways that they could be improved through the next round of examples. Then he responded to her feedback.

After this first exchange, though, the differences between an algorithm and a human design student became more apparent. Kurt's learning was reactive, limited to the examples he's seen and the only way he knows to think—in numerical variables like font sizes, rotations, and X-Y coordinates. Human designers often start out this way too—just absorbing examples of design and then mimicking them—but they usually grow past it. Instead of just copying a poster they see, the poster might inspire them to push aspects of it further, or combine them with other styles that work well together. AIs like Kurt can’t do this the way a person can—certainly not yet, and probably not anytime soon.

Kurt also doesn’t understand English, much less design terminology or ideas about why he’s doing anything. He can’t understand feedback about tone or context that Kristen might give her real students, like "your typography feels a little uninviting and impersonal. Is that tone appropriate to your audience/content/message?" And being able to respond to those sorts of questions in a sensitive, nuanced way is pretty central to being a good communication designer.

Ultimately we filled the wall with 90 prints, which made for a nice display of Kurt’s strengths—his ability to learn, and how prolific he can be—as well as Kristen’s—her skill as a designer and how she used those skills to teach.

Designers like Kristen can lean on Kurt to do things humans can't, like create dozens of compositions in a minute, or provide modifications or jumping off points that are really off the wall and decidedly not what an experienced designer would do. Some creative thinkers are already experimenting with these kinds of techniques; Robin Sloan, for example, a writer who hacked a text editor to complete his sentences using a deep learning model trained on a bunch of old sci-fi stories.

We imagine a future with more tools that creators can “teach"—unique products of an individual’s sensibilities that serve to amplify their intent and challenge them creatively, like a synthesizer that learns to play along and accompany in a style complementary to a musician’s vision. We hope Kurt inspires other designers, engineers, and data scientists to explore this future by building “collaborators” together.


As a data scientist, I know computers are great at trying lots of things quickly. But when it comes to learning artful nuance, they can fall flat. At the same time, human graphic designers are great at tweaking and critiquing, but they can only move their hands so fast in Illustrator. It's a juxtaposition that begs the question, can AI and humans collaborate to leverage their unique strengths?

Technology
AI & Emerging Tech
inviting algorithms to the design team, technology, digital innovation, ai, emerging technology, artificial intelligence, ai strategy, learning, graphic design, visual design, creativity, algorithms, digital experience

Company Say, Company Do: How Your Words Define Your Business

The common language of business needs a human-centered translation

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Battle terminology sneaks in (kill, crush, destroy, capture, acquire); and as in war, it becomes necessary to take the humanity out of those “targets” in order to execute on the plan.

But it’s not impossible to imagine a world where business success goes hand-in-hand with seeing and respecting the humanity of our competitors, or customers, or colleagues. Even at IDEO, where we champion a human-centered approach, the words we use in meetings and briefs can fall into the tried and true trope of conquest.

As a thought exercise, we made a list of the common terms that can dehumanize customers and competitors, and a list of alternatives that might infuse our conversations about individual and organizational performance with more humanity, agency, and reciprocity.

No one needs more business jargon, but we have a hunch that changing the way we speak can change the way we think, and in turn can change the way business feels and what it delivers. We’re trying it out and invite you to do the same.

Business is competitive by design. To succeed, as an individual or an organization, requires assertiveness, power, and strength. As a result, much of the language we use while doing business implies a desire to overpower—or even disempower—our competitors.

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company say company do how your words define your business, company say company do, how your words define your business, team collaboration, organizational culture

Lindsey Turner

I’m passionate about building brands, products, and experiences that help organizations show up with meaning and momentum.

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Leader
Leaders

I help organizations cut through complexity by shaping how they show up, through brand strategy, identity, and storytelling.

Working at the intersection of brand and business, I bring an editorial eye and a bias toward making—turning ideas into tangible experiences that people can understand, trust, and believe in.

My work spans government, healthcare, financial services, media, and consumer goods, from launching Gen Z-focused ventures to building innovation labs and reimagining legacy brands. I relish moments of ambiguity and enjoy translating across teams, perspectives, and priorities to move ideas forward.

I started my career in editorial and digital design, shaping cross-platform experiences and identity systems in publishing and agency environments. That foundation still shapes how I work today: I’m detail-oriented, collaborative, and overreliant on the Oxford comma. I hold a BFA in Visual Communication from the School of the Art Institute of Chicago.

My tween twins teach me more about technology and gen-alpha than the last decade of trend reports.
Making things that matter
Consumer Products & Retail
Media & Entertainment
AI & Emerging Tech

Rachel Young

My work helps organizations see who their products aren't working for—and build the will and the tools to do something about it

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Leader
Leaders
For 25 years, I've asked the same question: Who does this design exclude—and what are we going to do about it?

My work spans human-centered strategy, inclusive design, and qualitative research, with clients ranging from Microsoft, Google, and Verizon to the National Science Foundation, and San Francisco Unified School District.

Before IDEO, I taught elementary school in East Palo Alto and spent a decade doing design work with social service organizations—where I learned firsthand what it costs people when systems are built without them in mind.

I am currently writing User Error, a nonfiction book about digital access and the design decisions behind it. I live in Oakland, California.

The greatest project to which I’ve ever contributed is raising my two daughters with my husband.
Uncovering unmet needs
Consumer Products & Retail
Learning & Work
Media & Entertainment
Play
Public Sector

Brian Pelsoh

I lead with craft, ensuring our work is creatively excellent: rooted in deep human insight and imagination, while also grounded in the realities of business and technology.

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Leader
Leaders

My expertise spans brand, communication, and product design across tech, education, the arts, and social impact.

I believe great work demands both high-level vision and obsessive attention to detail, and only happens through collaboration.

I bring an inclusive, hands-on approach and a deep understanding of business, which enables me to consistently deliver excellence while always asking why.

Before joining IDEO, I worked at the brand firms Pentagram and VSA Partners. I began my career as a designer, leading teams at the School of the Art Institute of Chicago and the Milwaukee Art Museum. I hold an MFA in graphic design from Maryland Institute College of Art and a BFA in communication design from the Milwaukee Institute of Art & Design, and have taught at some of the best design schools in the US.

I love a good crit.
An inclusive, hands-on approach
Health
Learning & Work
Media & Entertainment
Public Sector
AI & Emerging Tech

Tony Wong

I am responsible for IDEO’s long-term success in China and working with clients to use design as a tool to enable growth.

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Leader
Leaders

I am responsible for IDEO’s long-term success in China and working with clients to use design as a tool to enable growth. Specifically, I have helped Chinese companies design holistic brand solutions through the development of their products, communication, services, and innovation teams, and I have helped multinationals expand their presence and influence in China.

I advise global leaders on developing China-led innovation and capabilities.

In over 15 years in IDEO Shanghai, I have worked on projects that use design to elevate the quality of the experience of healthcare products and services, streamline processes that increase productivity, create spaces and programs that promote and enable inclusive communities, and build next generation mobility solutions that are planet-positive.

Before joining IDEO, I worked at Philips Electronics and the Electrolux Group in Italy, the Netherlands, and Singapore on a number of breakthrough commercial products. I am a member of the Young President Organization in Shanghai.

I have a thing for antique maps.
Developing China-led innovation and capabilities'
Consumer Products & Retail
Food
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Industrial & Manufacturing
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How to use AI as an editor, not a writer

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Ed White shares how he uses AI as an editor—not a writer—to sharpen storytelling, rehearse ideas, and preserve the productive friction that makes creative work better.

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Ed White has a rule he's tested on his own writing: hold yourself as the writer, and let AI be your editor. Ed is a Senior Design Director at IDEO's London studio, where he co-leads the firm's AI portfolio across Europe. Before IDEO, he spent 12 years as a writer and editor at the Financial Times, Wired, and Contagious. So when he talks about when to use AI for storytelling and when not to, it comes from two decades of crafting his storytelling skills.

In this episode, Mina Seetharaman talks with Ed about two specific tools he uses to keep AI in an editor's seat: a "roasting agent" prompted to critique his drafts without any sugarcoating, and a simulated audience he rehearses pitches on before the real thing. They also get into what Ed is hearing from design leaders at Anthropic, Lovable, Shopify, and Google Creative Lab about how creative work is changing, and why he thinks the friction of writing something yourself is worth protecting rather than automating away.

AI & Emerging Tech
Media & Entertainment
Technology
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Building a personal AI for the messiness of life: Sida Li

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Becca Carroll talks with Cue co-founder Sida Li about designing a personal AI for the messiness of everyday life—not just work. They explore how Sida stays anchored to human needs while navigating fast-changing technology, product tradeoffs, business-model experimentation, and the realities of building an AI company today.

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Most AI products today are built for work—a space with clear problems and established systems. One founder noticed a gap: personal life is messier, harder to systematize, and mostly left behind by the AI boom. So she built Cue, a personal AI that lives inside iMessage and group chats, to go where the other tools haven't.

In this episode, Becca Carroll, IDEO's Chief Strategy Officer, talks with Sida Li, co-founder and CEO of Shared Context Lab, about staying anchored to a human need while the technology around her keeps changing shape, why she treats her business model with the same rigor she'd bring to a product, and what it feels like to build a company at this particular, disorienting moment in AI.

The conversation also gets into how Sida makes design decisions: the language Cue uses to describe itself, the tradeoffs behind building inside iMessage instead of a new app, and a real story about a business idea that didn’t pan out.

This is the second in a two-part series profiling founders from IDEO's Startups-in-Residence program. The first conversation is with Johannes Seemann, founder of Sooner, on designing GenAI for the emotional side of money.

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AI & Emerging Tech
Technology
Learning & Work
Episode image

Designing GenAI for the emotional side of money: Johannes Seemann

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Designing financial tools around the feelings that shape money decisions.

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Most personal financial tools are built to run the numbers and optimize towards a budget. While that works for some, most people experience money as a lived relationship that does not neatly fit into a spreadsheet. Johannes Seemann and Becca Carroll discuss why money is emotional before it is mathematical, and what a human-centered approach to building a generative AI financial product looks like in practice.

Health
AI & Emerging Tech
Technology
Financial Services
Learning & Work
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The curious leader's edge in uncertainty: Scott Shigeoka

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How genuine curiosity helps leaders navigate uncertainty with greater confidence.

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Mina Seetharaman talks with Scott Shigeoka, author of Seek and Head of Curiosity Cultivation at the Eames Institute, about what distinguishes genuinely curious leadership from performative curiosity, how power dynamics shape curiosity, and why practicing curiosity can restore energy rather than drain it.

Learning & Work
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